Schweser ID#: 47223
Does anyone else think the answer should be D?
Ben Leesom, CFA, thinks distressed securities are appropriate for one of his clients. If liquidity is important for the client, then Leesom should recommend:
A) investments with either a hedge fund structure or a private equity structure.
B) an investment with a private equity structure over a hedge fund structure.
C) an investment with a hedge fund structure over a private equity structure.
D) neither an investment with a hedge fund structure nor a private equity structure.
Your answer: D was incorrect. The correct answer was C) an investment with a hedge fund structure over a private equity structure.
Distressed securities can be divided by the two indicated structures. Hedge fund structured investments are usually more liquid than investments in distressed equity using the private equity structure.
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.